Justice Mark Friedlander
Onewest Bank moved for a default judgment against the Campbell defendants, and Ruel Richards, on liability, in this action by Onewest to quiet title. Ivan Richards conveyed to Ruel title to property that was encumbered by a mortgage from Argent. The mortgage went into foreclosure and Argent agreed to a short sale, agreeing to accept $292,000 in full satisfaction of the mortgage. Ruel conveyed title to purchasers, the Campbells, who financed through Dynamic. A portion of the Campbells’ loan proceeds was to be used to satisfy Argent’s mortgage. The check to be used to satisfy the mortgage was inexplicably returned to Ruel who deposited it into an account at TD Bank. The check had one endorsement, appearing to be Ruel’s, and Argent’s mortgage was never satisfied, thus it foreclosed on the property and a foreclosure sale was held. The property sold to Deutsche Bank, one week before Dynamic’s assignment to Onewest. The court found Dynamic’s assignment to Onewest was broad enough to encompass an assignment of rights to Onewest to claim damages from Ruel, whose wrongful conduct negated the value of what Onewest purchased from Dynamic. Thus, a default judgment may be entered against Ruel for $292,000, but was denied as to the Campbells.
